Title
Approval for Continued Exploration for Creation of a Tax Audit Team
Recommended Action
Committee Recommendation:
The Finance Committee recommend approval of initiative and referral to City Council for
consideration.
City Manager Recommendation:
Move to approve the continued exploration of a tax audit program, directing the Finance Department to continue working toward its creation, including approving necessary budgetary funding and FTE as part of a future 2024 budget adjustment Ordinance.
Report
Issue:
Whether to approve the continued exploration of a tax audit program, directing the Finance Department to continue working toward its creation, including approving necessary budgetary funding and FTE as part of a future 2024 budget adjustment Ordinance.
Staff Contact:
Aaron BeMiller, Finance Director, 360.753.8465
Presenter(s):
Brandie Andrews, Tax and License Analyst, City of Olympia
Background and Analysis:
Businesses operating here are required to obtain an Olympia endorsement on their state business license and file Olympia tax returns. In the past five years, Olympia's business taxpayer base has grown by 30% while tax filings have only increased 2%. New businesses may be unfamiliar with municipal tax and license rules. Covid also reset existing business' knowledge about municipal licensing and taxation responsibilities. These and other factors have led to heightened levels of voluntary non-compliance.
Exploration of creating a tax team began in earnest in mid-2023 and since that time, Finance team members have met with several cities who have a similar program to learn their processes. Additionally, the Finance department has continued to investigate an online B&O tax payment solution. Staff have looked at various solutions but all that we have tested have had limitations that ultimately would make online filing more difficult than the current method of filing. However, we have been exploring a solution created by another Washington City which...
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